Given that the tiger is a ferocious animal, this year is generally not good for risky ventures. To succeed in investing, we will need the traits of a tiger - courage, stealth and strength.

It is a matter of time before we experience another major recession because the key lessons from this financial crisis were forgotten easily and people are back to their greedy speculative ways. But the next time round, the Federal Reserve may find its hands tied, with very few options available.

The key is not to be overexposed to the stock market and stay nimble as the opportunities that present themselves may not follow traditional recovery patterns. Stocks could be depressed further or languish for years, so if you see the need to take profits off the table, then just do it.

There is nothing more detrimental to our psychology than seeing our friends get rich. With each day that stock markets continue their impressive surge, lingering skepticism are transformed into belief and rational people are behaving once again like gamblers.

More on this topic (What's this?)
The Bearish Case For Equities
Investment U’s Outlook: Bull or Bear?
Rosenberg: End Of Bear Rally
Read more on Bear market at Wikinvest

I wish all readers of Jeflin’s Investment Blog a Happy New Year in 2009.
The past year has been sobering for taxpayers, retail investors and fund managers, what with severe declines in housing, mortgages, banking, stock markets, commodities, retail, automotive, shipping industry, etc. The extreme volatility in 2008 may be over but more of the same […]

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